OPERATIONS MANAGEMENT

Course Introduction
• Operations may be defined as a conversion (transformation)
process that yields a tangible output (goods) or an intangible
output (services), a deed, a performance, an effort
• The value driven approach focuses on the value provided to
the customer. Customers are those who purchase final goods
and services. Those who ultimately use the products are
called consumers
• Where Operations Management was once viewed primarily
as a manufacturing function, service firms are now
recognizing its tremendous competitive potential..
• The four basic functions of management, i.e. planning,
organising, directing and controlling are performed by
managers at all levels of an organisation.

Cont….
 Course Index

Sr.No. Reference No. Particulars

1. Basics of Operations Management

2. Chapter 1 Operations Management : Trends and Issues

3. Chapter 2 Facilities Location

4. Chapter 3 Plant Layout
5. Chapter 4 Productivity and Production
6. Chapter 5 Manufacturing Economics
7. Chapter 6 Inventory Management and Models
8. Chapter 7 Total Quality Management
9. Chapter 8 Theory of Constraints
 Operations Management Session 11
Chapter 8: Theory of Constraints

Sr.No. Particulars
1. Need for Scheduling & Alternative terms
2. Loading of Machines
3. Scheduling Context
Scheduling Rules
Performance Criteria
4. Scheduling of Flow shops (Johnson’s Rule)
5. Scheduling of Job shops
6. Operational control in Mass Production Systems
7. Operation Planning based on ‘Theory of Constraints’
Analogy of Marching Soldiers & Synchronous Manufacturing
Drum Buffer Rope methodology
Lets Sum up
Need for Scheduling
Scheduling
•A methodology to fine tune planning and decision making due to the
occurrence of random events
•Operations scheduling uses a defined framework to address issues
associated with the use of available resources and the delivery of
products and services as promised to the customers.
•Scheduling is ‘short term’ planning

Need for Scheduling

• As we approach real time, several kinds of additional information
become available to an organization. using this information makes
operations more accurate than choosing to simply ignore them.
•The occurrence of random events is inevitable in business
•In the short term, we need to focus on micro-resources, a single machine,
a set of workers, and so on
Need for Scheduling
Scheduling Terminologies
•Loading is defined as a planning methodology using which the
resources in an operating system are assigned with adequate number of
jobs during the planning horizon

•Scheduling is defined as the process of rank ordering the jobs in front of

each resource to maximize some chosen performance measure

•Routing is defined as the order in which the resources available in a

shop are used by the job for processing

•Sequencing is the ordering of operations of the jobs in the operating

system

•Dispatching is defined as the administrative process of authorizing

processing of jobs by resources in the operating system as identified by
the scheduling system
Loading of Machines
• ‘N’ jobs and ‘N’ machines
One – One Assignment of Jobs-Machines by Assignment Method

•Fewer jobs than machines

Idle machine scenario; rotating shifts; maintenance schedules

•Fewer machines than Jobs

Several jobs scheduled on the same machine

Scheduling context
•Number of jobs (n)
•Number of machines (m)
•Shop Configuration
•Flow shop
•Job Shop
•Cellular Manufacturing System
Scheduling Context
Scheduling Rules
•Shortest processing time (SPT): Chooses the job with the least
processing time among the competing list and schedules it ahead of the
others
•Longest processing time (LPT): The job with the longest processing time
is scheduled ahead of other competing jobs
•Earliest Due Date (EDD): Establishes priorities on the basis of the due
date for the jobs.
•Critical Ratio (CR): Critical ratio estimates the criticality of the job by
computing a simple ratio using processing time information and due
date. A smaller value of CR indicates that the job is more critical.
Re maining time ( Due Date − Current Date)
Critical Ratio (CR ) = =
Re maining Work Re maining Pr oces sin g Time

•First Cum First Served (FCFS): Schedules jobs simply in their order of
job arrival
•Random Order (RAN): Assign priorities to jobs on a random basis.
Scheduling Context
Current time = 0
Processing Order of Random
Job No. time (mins) arrival Due by CR Number
1 12 1 23 1.92 0.233
2 9 2 24 2.67 0.857
3 22 3 30 1.36 0.518
4 11 4 20 1.82 0.951

Rule Rank ordering of jobs based on

SPT 2–4–1–3
LPT 3–1–4–2
EDD 4–1–2–3
CR 3–4–1–2
FCFS 1–2–3–4
RAN 1–3–2–4
Scheduling Context
Performance Criteria
Flow time is defined as the elapsed time between releasing a job into the
shop and the time of completion of processing of the job
Release time of the job : Ri
Completion time of the job : Ci
Flow time of the job : Fi = (Ri – Ci)

Make span is defined as the time taken to complete all the jobs released
into the shop for processing
Make span (Max. Completion time): Cmax = max{Ci }
i

Lateness defined as the difference between completion time and due date.
If the due date for a job i is denoted as Di, then
Lateness of the job : Li = (Ci – Di)

If a job is completed ahead of time, instead of computing a negative value for Li if

we take zero, then the resulting measure is known as Tardiness
Tardiness of the job : Ti = max(0, Li)
 Scheduling Context
Performance Criteria

Processing Release Completion Due by Flow time

order time (Ri) time (Ci) (Di) (Fi) Lateness Tardiness
3 0 2 19 2 -17 0
1 0 6 6 6 0 0
2 0 13 9 13 4 4
4 0 21 17 21 4 4
Mean 10.50 10.50 -2.25 2.00
Maximum 21.00 21.00 4.00 4.00
Minimum 2.00 2.00 -17.00 0.00
No. of tardy jobs = 2; Make span = 21
 Scheduling of Flow Shops

•In a flow shop, the resources are organized one after the other in
the order the jobs are processed
•A pure flow shop is one in which all the jobs visit all the
machines in the same order (beginning at machine 1 and ending at
machine m)
•In a mixed flow shop, some jobs are allowed to skip machines in
between

Job 1
Machine Machine Machine Machine
Job 2
1 2 3 m
Job n

Pure Flow Shop

Scheduling of Flow Shops
Johnson’s Rule
Step 1: Let t1i denote the processing time of job i in machine 1
and t2i denote the processing time in machine 2.
Step 2: Identify the job with the least processing time in the list. If
there are ties, break the tie arbitrarily.
a)If the least processing time is for machine 1, place the job at the
front of the sequence immediately after any jobs already
scheduled
b)If the least processing time is for machine 2, place the job at the
back of the sequence immediately before any jobs already
scheduled
c)Remove job i from the list.
Step 3. If there are no more jobs to be scheduled go to step 4.
Otherwise go to step 1.
Step 4. The resulting sequence of jobs is the best schedule to
minimize the make span of the jobs.
 Scheduling of Flow Shops
Johnson’s Rule Job No
Processing time
Machine 1 Machine 2
Job 1 4 7
Job 2 6 3
Job 3 2 3
Job 4 7 7
Job 5 8 6

Job Sequence Job 3 Job 1 Job 4 Job 5 Job 2

-
Machine 1 3 3 1 1 1 1 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 2 2 2 2 2 2

Machine 2 3 3 3 1 1 1 1 1 1 1 4 4 4 4 4 4 4 5 5 5 5 5 5 2 2 2

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Time units
Scheduling of Job Shops

In a job shop, machines are not organised in any processing

order. Rather similar type of resources is grouped together
Job 1: 1-4-2-5-6
Job 2: 3-2-1-4-6-7
Job 3: 2-3-4-7-5-6
Machine Machine
1 3
Job 1
Machine
6

Job 3
Machine
4

Machine Machine
2 7
Job 2
Machine
5
Scheduling of Job Shops
Operational Control in Mass Production Systems

•Much of control and scheduling boils down to appropriately

arriving at balanced flow of components in the shop floor
• Given a certain availability of resources modify the cycle
time to meet daily production targets
• Machine Redeployment
• Altering Operator Allocations
• Adjusting Material Feed rates

• TAKT time provides a rhythm for the overall functioning

of the shop
• TAKT time is the maximum amount of time in which a
unit of product needs to be produced in order to satisfy
customer demand.
 Operational Control in Mass Production Systems
•Illustration for Worker deployment for adjusted TAKT:
*Assume each product work content is 1764 seconds

Required output per day 400 450 371

No. of shifts per day (7 hrs per shift) 2 2 2
= 7 x 60
Required output per shift 200 225 185.5

Net available production time (Mins) 420 420 420

=(420x60)
TAKT Time (Seconds) 126 112 136 200
Work Content (Seconds) 1,764 1,764 1,764
= 1764
No. of Operators required per shift 14 16 13 126

Total number of operators required 28 32 26

= 14 x 2
Operational Planning & Theory of Constraints (TOC)
•The operational philosophy behind TOC is that capacity of shop does
not reflect the cumulative capacity of the different workstations.
•TOC does this by devising a scheduling system wherein the bottleneck
“pulls” its requirements from other stations.
Any resource whose capacity is equal to or less than the demand placed on it
is a bottleneck resource.

•Theory of Constraints is a systematic body of knowledge, which

recognizes that
oResources in manufacturing organizations differ
from one another in their ability to process
components
oStatistical fluctuations and dependant events are
characteristic of resources in a manufacturing
organization
oUses specific methods to improve the
performance of the system under these conditions.
 Analogy of Marching Soldiers

Resource Marching Soldiers Production System

Processing Ground to be covered Raw Material to be processed
WIP Gap between the first and the Work in Process in the shop floor
last soldier
Throughput The extent of ground covered Amount produced and sold by
by the marching soldiers the production system
Operating Amount of energy expounded Cost of transforming the raw
Expenses by the soldiers to complete the material into throughput
march
Objective To cover a certain extent of the To achieve a certain throughput in
ground in a given time a given time
Synchronous Manufacturing
Synchronous manufacturing is an application of theory of constraints to
scheduling and operational control of manufacturing systems
In synchronous manufacturing the focus is on synchronizing flow rather
than balancing capacities

Drum Buffer Rope (DBR) Methodology

•Develop a schedule so that it is consistent with the constraints of the
systems (Drum)
•The schedule is actually the drum beat
•Protect the throughput of the system from statistical fluctuations
through the use of buffers at some critical points in the system (Buffer)
•Tie the production at each resource to the drum beat (Rope)
Lets Sum up
• The focus shifts from operations planning to operational
control in the short term period. Scheduling aids operational
control in manufacturing and service systems.
• The scheduling context relates to the number of jobs and
machines in the system and the physical configuration of the
machines. These factors greatly influence the complexity of
scheduling.
• Flow shops and job shops are two alternatives for the
configuration of a manufacturing system. The scheduling
methodology and complexity differ vastly between these two.
Job shops are far more complex to schedule than flow shops.
• Johnson’s algorithm provides an optimal schedule for a two
machine–n job problem using the shortest processing time
rule for scheduling. Several variations of Johnson’s algorithms
are available for flow-shop scheduling.
Lets Sum up
• Operational control in mass production systems are primarily
achieved through use of TAKT time–based scheduling.
• The theory of constraints indicates that scheduling of
operations must take into account the existence of bottlenecks
and statistical fluctuations in operations.
• Synchronous manufacturing principles apply the theory of
constraints and develop alternative schedules using a drum–
buffer–rope methodology.
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